Fresh Company is preparing its cash results for the month of May. The following information is available concerning its account receivable:

Estimated credit sales for May $ 200,000
Actual credit sales for April $ 150,000
Estimated collection in May
for credit sales in May 20%
Estimated collection in May
for credit sales in April 70%
Estimated collections in May
for credit sales prior to April $12,000
Estimated write-offs in May
for uncollectible credit sales $ 8,000
Estimated bad debts expense in May
for credit sales in May $ 7,000

Required:
What are the estimated cash receipts from account receivable collections in May?

E4 - 11
Determining cash collections on account

The following information was taken from the 2005 financial statement of Planet Corporation:

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MBA, Texas A&M University-Kingsville

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